Prosecutors Indict 10 Including Kim Man-bae's Wife and Associates for Hiding 39 Billion KRW in Criminal Proceeds

Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management, along with his wife and close associates who are accused of concealing 39 billion KRW in profits from the Daejang-dong development project, have been collectively brought to trial.

Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management, who was indicted on charges of bribery, is attending the first trial sentencing hearing related to the Daejang-dong development project lobbying and preferential treatment allegations at the Seoul Central District Court in Seocho-gu on the afternoon of the 8th. Photo by Kang Jin-hyung aymsdream@

The Anti-Corruption Investigation Division 1 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Eom Hee-jun) announced on the 24th that they have indicted 10 accomplices, including Hwacheon Daeyu co-CEOs Lee Seong-moon and Lee Han-seong, as well as Kim’s wife, on charges of violating the Act on the Regulation of Concealment of Criminal Proceeds and the Farmland Act.

Lee Seong-moon, Lee Han-seong, and others are accused of hiding approximately 36 billion KRW in criminal proceeds related to the Daejang-dong project from November 2021 to December 2022 by splitting the amount into small checks and storing them in officetels contracted under borrowed names or transferring the funds to third-party accounts (violation of the Act on the Regulation of Concealment of Criminal Proceeds).

Lee Seong-moon is also charged with disguising 2.385 billion KRW of criminal proceeds from the Daejang-dong development last September as a loan borrowed from Hwacheon Daeyu to conceal the funds.

Choi Woo-hyang, another close associate of Kim and a director at Hwacheon Daeyu, was additionally indicted for instructing a corporate representative to conceal checks worth approximately 14.2 billion KRW around December last year (obstruction of evidence).

Kim’s wife is also charged with violating the Farmland Act by falsely stating agricultural experience to obtain farmland acquisition qualification certificates while purchasing farmland in the Ip-buk-dong and Omokcheon-dong areas of Gwonseon-gu, Suwon City, from July to October 2021 for real estate speculation. Despite being a former journalist, Kim reportedly wrote himself as having "20 years of agricultural experience" in the agricultural management plan at that time.

Lee Han-sung, CEO of Cheonhadongin No. 1
Photo by Yonhap News

The prosecution believes that among the total 39 billion KRW in criminal proceeds concealed by Kim, Lee Seong-moon played a major role in hiding 29 billion KRW, Lee Han-seong 7.5 billion KRW, Choi 9.5 billion KRW, and Kim’s wife 4.029 billion KRW.

Suspects who participated in hiding the money or destroying evidence under Kim’s orders have also been brought to trial.

When the investigation into the Daejang-dong development corruption allegations began in September 2021, the prosecution indicted without detention an interior contractor Lee Mo and Kim Mo, who smashed and burned Kim’s mobile phone with a hammer under his orders, as well as Park Mo, a corporate representative who hid 14.2 billion KRW in checks in loan safes and vehicles under the direction of Choi Woo-hyang.

Real estate agent Jung Mo, who assisted Kim’s wife in purchasing speculative farmland, and local government official Kim Mo were indicted for violating the Farmland Act. Former savings bank executive Yoo Mo, who received 280 million KRW from Kim despite knowing the funds were criminal proceeds from the Daejang-dong development, was indicted for concealing criminal proceeds.

Meanwhile, the first trial for Kim’s charges including violation of the Act on the Regulation of Concealment of Criminal Proceeds is scheduled for the 5th of next month at the Seoul Central District Court, presided over by Chief Judge Kim Sang-il of Criminal Division 1.

This content was produced with the assistance of AI translation services.